THE EFFECTS OF INTERNAL MARKETING ON SHIP ... - DergiPark

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The Effects of Internal Marketing… Yayın Geliş Tarihi: 18.05.2017 Yayına Kabul Tarihi: 30.05.2017 Online Yayın Tarihi: 25.06.2017 DOI: 10.18613/deudfd.321567 Araştırma Makalesi (Research Article)

Dokuz Eylül Üniversitesi Denizcilik Fakültesi Dergisi Cilt:9 Sayı:1 Yıl:2017 Sayfa:25-54 ISSN:1309-4246 E-ISSN: 2458-9942

THE EFFECTS OF INTERNAL MARKETING ON SHIP AGENTS’ JOB SATISFACTION: A QUANTITATIVE RESEARCH Esra BARAN1 Gamze ARABELEN2 ABSTRACT The internal marketing concept is an important part of holistic marketing and services marketing triangle, and it argues that the needs and wants of employees must be satisfied by viewing them as internal customers. The main purpose of this research is to investigate the effects of internal marketing activities on employees’ job satisfaction. In order to reach the aim of the study, as a quantitative research method, the survey method was used. A total of 157 questionnaires were conducted through office employees of container line ship agents in İzmir. 143 usable responses were collected and data were analyzed by SPSS 20.0 software program. Regression analysis was used to examine the effects of internal marketing on job satisfaction. The research findings revealed that the internal marketing (development, vision and communication, and reward system) has a positive effect on job satisfaction of the office employees of container line ship agents in İzmir. Consequently, this research contributes to the related literature and also to container line agents’ managers in terms of internal marketing activities and employees’ job satisfaction. Keywords: Services marketing, internal marketing, job satisfaction, ship agent, İzmir.

*This research was compiled from the master’s thesis entitled "The Effect of Internal Marketing on Job Satisfaction: A Research on Ship Agencies" completed in Dokuz Eylül University Graduate School of Social Sciences, Izmir. 1 Res. Asst., Dokuz Eylül University, Maritime Faculty, İzmir, [email protected] 2 Asst. Prof. Dr., Dokuz Eylül University, Maritime Faculty, İzmir, [email protected]

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The Effects of Internal Marketing…

İÇSEL PAZARLAMANIN GEMİ ACENTELERİNİN İŞ TATMİNİ ÜZERİNDEKİ ETKİSİ: NİCEL BİR ARAŞTIRMA ÖZET İçsel pazarlama kavramı bütünsel pazarlamanın ve hizmet pazarlaması üçgeninin önemli bir parçasıdır ve çalışanları iç müşteri olarak görerek, onların istek ve ihtiyaçlarının tatmin edilmesi gerektiğini savunur. Bu araştırmanın temel amacı, içsel pazarlama faaliyetlerinin çalışanların iş tatmini üzerindeki etkisini araştırmaktır. Çalışmanın amacına ulaşmak için, bir nicel araştırma yöntemi olarak, anket yöntemi kullanılmıştır. Toplam 157 anket İzmir'deki konteyner hat gemi acentelerinin ofis çalışanlarına uygulanmıştır. 143 adet kullanılabilir anket toplanmış ve veriler SPSS 20.0 yazılım programı ile analiz edilmiştir. İçsel pazarlamanın iş tatmini üzerindeki etkisini incelemek için regresyon analizi kullanılmıştır. Araştırmanın bulguları, içsel pazarlamanın (gelişim, vizyon ve iletişim, ve ödüllendirme sistemi) İzmir'deki konteyner hat gemi acenteleri ofis çalışanlarının iş tatminleri üzerinde pozitif bir etkiye sahip olduğunu ortaya koymuştur. Sonuç olarak bu araştırma, konuyla ilgili yazına katkıda bulunup aynı zamanda içsel pazarlama faaliyetleri ve çalışanların iş tatmini açısından konteyner hat gemi acentesi yöneticilerine katkı sağlamaktadır. Anahtar Kelimeler: Hizmet pazarlaması, içsel pazarlama, iş tatmini, gemi acentesi, İzmir.

1. INTRODUCTION The internal marketing activities which are successfully performed by the organizations have positive influences on the employees and also on the organizations’ goals and performance. Especially in labor-intensive service organizations the employees have crucial importance. There is a common agreement that "the organizations cannot have satisfied customers with unsatisfied and unhappy employees". Therefore, there should be basic requirements performed by the organizations for the successful implementation of internal marketing. These practices can be addressed as establishment of the organization’s internal marketing objectives, involvement of the management and employees in the process, effective internal communication within the organization and continuous control of the implementation process for corrective actions (Catalin et al. 2014: 11). In the competitive market environment, service organizations should offer diversified supplementary services in order to add value to their core services (Gilmore, 2003: 18). In order to provide excellent 26



service package to their customers, the service organizations can work with separate organizational entities as partners which are called ‘intermediaries’. Intermediaries in the shipping sector offer very important services in order to maintain the high quality, effective, economical, safe and secure logistics and maritime transport services. In liner shipping, the intermediaries in the distribution channel include the ship agents and freight forwarders (Deveci and Çetin, 2013: 473- 476). The agents are serving in the maritime industry and providing supporting, supplementary and facilitating services to the owners or operators of the ships. For the effective service offering they have crucial responsibilities. When the relevant literature was reviewed it was seen that there are many studies related to internal marketing practices in service companies. However, the relationship between internal marketing practices and job satisfaction in the ship agencies serving in the maritime industry has not been widely researched. For that reason, this research aims to examine the effect of internal marketing activities on their job satisfaction. Following this introduction part, in the second part of the study, the literature is reviewed; in the third part, the methodology of research is detailed; in the fourth part, findings of the research are highlighted. Then the research was finalized with conclusions and discussions in the fifth part.

2. LITERATURE REVIEW 2.1. Internal Marketing Concept Internal marketing plays a critical role in the services marketing triangle. The management must train their employees and give them the necessary tools to perform their jobs at the highest level in order to provide customer satisfaction (Kotler and Keller, 2011: 387; Strydom, 2005: 272). When the literature was reviewed, it was seen that there is a great extent of different definition for internal marketing (Table 1). This variety of the definitions causes difficulties for the implementation and adaptation of the concept. So in the practice, only a limited number of organizations apply the internal marketing practices (Rafiq and Ahmed, 2000: 449; Owusu-Frimpong and Martins, 2010: 29-30).

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Table 1: Internal Marketing Definitions in the Literature Author/s Berry (1981) Gronroos (1990) (in Varey,2002) Greene et al. (1994) Ballantyne et al. (1995)

Varey (1995)

Joseph (1996)

Kotler (1997)

Ballantyne (2000)

Rafiq and Ahmed (2000)

Varey (2002) Dunmore (2005)

Longbottom et al. (2006)

Internal Marketing Definitions We can think of internal marketing as viewing employees as internal customers, viewing jobs as internal products and then endeavoring to offer internal products that satisfy the needs and wants of these internal customers while addressing the objectives of the organization. Internal marketing is a management philosophy that provides managers with an understanding and appreciation for the roles of employees in the corporation, requiring that they have a holistic view of their jobs. Internal marketing is the key to superior service and the result is external marketing success. Internal marketing can be defined as the promoting of the firm and its product(s) or product lines to the firm’s employees. Internal marketing is any form of marketing within an organization which focuses staff attention on the internal activities that need to be changed in order to enhance external market place performance. Internal marketing is a process and mechanism for ensuring effective responsiveness to environmental changes, flexibility for adopting newly designed administrative arrangements efficiently, and continuous improvement in performance. Internal marketing is the application of marketing, human resources management, and allied theories, techniques and principles to motivate, mobilize, co-opt, and manage employees at all levels of organization to continuously improve the way they serve external customers and each other. Internal marketing means that the service firm must effectively train and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction. Internal marketing is a strategic approach to challenging both the attitudes and behavior of staff towards an understanding of the centrality of the customer. The term ‘customer consciousness’ is appropriate here. Internal marketing is a planned effort using a marketing-like approach to overcome organizational resistance to change and to align, motivate and inter-functionally co-ordinate and integrate employees towards the effective implementation of corporate and functional strategies, in order to deliver customer satisfaction through a process of creating motivated and customer orientated employees. Internal marketing is continuous training to enhance the service providers’ knowledge of their services and capabilities, their awareness of market opportunities and their marketing skills. Internal marketing is concerned with the resources and activities occurring within an organization that influence the nature of its culture and competitiveness as a route to achieving its purpose. Internal marketing may be viewed from a series of perspectives developing from an early emphasis on marketing orientation, to adopting marketing like approaches, to developing employee relationship management, and most recently to a focus on creating value (in this context for both external and internal customers).

Source: Authors 28



As stated by Gummesson (2000: 27), the concept of internal marketing is originated from services marketing. The origin of the internal marketing concept was suggested by Berry as a managerial approach to ensure satisfaction of customers by satisfying employees’ needs (Berry, 1981; Gounaris, 2008: 69). Gilmore (2000: 76) concluded that the main objective of the internal marketing is "to involve employees in the organization’s mission and strategic direction, and to help them understand and value the corporate objectives". The study of Rafiq and Ahmed (2000: 450) indicated that there are three separate phases of internal marketing concept development process. These phases are; employee motivation and satisfaction (first phase), customer orientation (second phase) and broadening the internal marketing concept, strategy implementation and change management (third phase). In order to provide a comprehensive internal marketing model, Rafiq and Ahmed presented a new model (Figure 1) which derived from the existing internal marketing literature by the combination of Berry’s and Gronroos’ models. The model highlights the importance of employee attitudes in service quality and customer satisfaction.

Figure 1: Internal Marketing Model Source: Ahmed and Rafiq, 2002: 20 29



Internal marketing aims to enhance the awareness among the employees about their roles and make the organization more marketoriented by active participation in marketing (Varey, 2002: 214). That it is why internal marketing concept should not be regarded as short-term practice to engage the attention of customers and must be adopted as management philosophy by the organizations (Sinčić and PološkiVokić, 2007: 11). Successfully implemented internal marketing activities have many significant benefits and consequences for both individuals and organizations (Dunne and Barnes, 2000: 196). Anosike and Ahmed (2006) evaluated the benefits of internal marketing into two categories. At the individual level, it links employees’ goals with the organization’s goals. At the organizational level, it helps the implementation of crossfunctional activities effectively by creating inter-departmental awareness among the personnel within the organization. The detailed literature review showed that the benefits of successfully implemented internal marketing activities include such consequences (Ahmed and Rafiq, 2003; Arnett et al. 2002: 87-89; Atlay Işık, 2011: 141-142; Dunne and Barnes, 2000: 196; Greene et al. 1994: 58; Gronroos, 1981; Heskett et al. 1994; Mishra, 2010: 189; Ting, 2011: 360; Varey, 1995: 46): -

decreasing the rate of personnel turnover, creating customer-conscious employees, improving employee commitment to the organization, reducing the barriers between departments, ensuring effective overall communication, promoting employees’ job satisfaction and motivation, facilitating organizational growth and development, improving ability to implement change within the organization, improving service quality, enhancing customer satisfaction and customer loyalty, and achieving and sustaining competitive advantage.

The relationship between the internal marketing and job satisfaction, organizational commitment, service quality, service culture, organizational performance, customer satisfaction, employee happiness and loyalty are the mostly investigated topics in the literature. Caruana and Calleya (1998) carried out a study in bank sector and found a significant relationship between internal marketing and organizational commitment. Hwang and Chi (2005) found that internal marketing has 30



positive impacts on employee job satisfaction and performance of international hotels. Chang and Chang (2007) and Chang and Chang (2009), in their studies carried out with nurses, found positive effects of internal marketing on both job satisfaction and organizational commitment. Tsai and Tang (2008), Başaran et al. (2011) found positive relationship between internal marketing practices and service quality in their study. The importance and impact of internal marketing activities on the service culture of the service organizations is emphasized in the case study of Atlay Işık and Cerit (2015) which was carried out in cruise tourism sector. In the studies of Atlay Işık and Altunoğlu (2016a, 2016b) which are carried out with private hospitals, the findings pointed out that although there is a negative relation between internal marketing and organizational cynicism dimensions, there is a positive relation between internal marketing and organizational commitment (Atlay Işık and Altunoğlu, 2016a). According to their study, while internal marketing has positive impact on organizational commitment and job satisfaction, also it has a negative impact on organizational cynicism (Atlay Işık and Altunoğlu, 2016b). Tanhaei et al. (2013) revealed that internal marketing affects employee happiness. The positive influence of internal marketing on customer orientation has been found in the studies of Huang and Chen (2013) and Fu (2013).

2.2. Relationship between Internal Marketing and Job Satisfaction Smith (1974) defined the job satisfaction as "an affective response of the worker to his job. It is viewed as a result or consequence of the worker’s experience on the job in relation to his own values, that is, to what he wants or expect from it". Locke (1976) defined it as “a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences”. According to Spector (1997), job satisfaction is "simply how people feel about their jobs and different aspects of their jobs. It is the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs". Successfully implemented internal marketing activities have many outcomes and one of them is job satisfaction. Internal marketing can be seen as a driver of employee satisfaction (De Bruin-Reynolds, et al. 2015: 28). In order to ensure a positive influence and satisfaction on employees, the organizations must try their best to apply the internal marketing practices (Shiu and Yu, 2010: 798, Ting, 2011: 355). 31



Lings and Greenley (2005: 291) stated that "internal marketing uses a marketing perspective for managing an organization’s human resources". According to Gounaris (2008:69) and Pantauvakis (2012: 179), satisfactions of the service employees are directly related to the tasks of both marketing and human resources department in the organizations. So, as a holistic concept, internal marketing includes both service marketing and human resource management (HRM) activities. The effect of internal marketing activities on the employees’ job satisfaction has been examined in many studies. Researchers have found a positive relationship between internal marketing and job satisfaction in different sectors. In addition to this, some of the studies have found the mediating effect of job satisfaction between internal marketing and its consequences (i.e. organizational commitment, organizational performance, service quality etc.). The studies which have found positive relationship between internal marketing and job satisfaction are presented in Table 2. However, Sihombing and Gustam (2007) have found negative relationship between internal marketing and job satisfaction in their study which was carried out in private university. Table 2: Literature Review Related to Relationship between Internal Marketing and Job Satisfaction Sample

Author/s

Hotel

- Hwang and Chi (2005) - Gounaris (2008) - Tag-Eldeen and El-Said (2011)

Hospital and Medical Center

- Chang and Chang (2007) - Iliopoulos and Priporas (2011) - Ahmad and Al-Borie (2012)

Education (University and School)

- Sihombing and Gustam (2007) - Demir et al. (2008) - Usta (2009) - Başaran et al. (2011) - Ting (2011)

Insurance Bank and Credit Institution Sport Schools and Centers

- Ruizalba et al. (2014) - Kim et al. (2015)

- Pantouvakis (2012) - Dahl and Peltier (2014) - Chen et al. (2015) - Atlay Işık and Altunoğlu, (2016b) - Hung (2012) - Ogunnaike et al. (2012) - Omar Salem (2013) - Shabbir and Salaria (2014)

- Shiu and Yu (2010) - Poor et al. (2013) - Tortosa-Edo et al. (2010) - Kameswari and Rajyalakshmi (2012) - Barzoki and Ghujali (2013) - De Bruin-Reynolds et al. (2015) - Yıldız (2011) - Chiu et al.(2014)

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Based on the literature review, to examine the relationship between the internal marketing and job satisfaction the main hypothesis of the research was developed as below: H1: Internal marketing has a significant positive effect on job satisfaction. Sub-hypotheses with the dimensions of internal marketing and job satisfaction dimensions are developed. These are: H1-1: Development dimension of internal marketing has a significant positive effect on job satisfaction. H1-2: Vision and communication dimension of internal marketing has a significant positive effect on job satisfaction. H1-3: Reward system dimension of internal marketing has a significant positive effect on job satisfaction. H1-4: Development dimension of internal marketing has a significant positive effect on intrinsic job satisfaction. H1-5: Vision and communication dimension of internal marketing has a significant positive effect on intrinsic job satisfaction. H1-6: Reward system dimension of internal marketing has a significant positive effect on intrinsic job satisfaction. H1-7: Development dimension of internal marketing has a significant positive effect on extrinsic job satisfaction. H1-8: Vision and communication dimension of internal marketing has a significant positive effect on extrinsic job satisfaction. H1-9: Reward system dimension of internal marketing has a significant positive effect on extrinsic job satisfaction.

3. METHODOLOGY 3.1. Aim and Model of the Research This research aims to investigate the effect of internal marketing on job satisfaction of container line ship agents’ employees. The conceptual model of the research is presented in Figure 2. Independent variables are dimensions of internal marketing and dependent variables are dimensions of job satisfaction.

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Figure 2: Conceptual Model of the Research

3.2. Measurement In the first part of the questionnaire, there are nominal and openended questions related to profile characteristics of the respondents. The second part of the questionnaire consists of 15 internal marketing items developed by Foreman and Money (1995) with 5-point Likert-type scale from ‘strongly disagree’ to ‘strongly agree’. In the third part, the short form Minnesota Satisfaction Questionnaire (MSQ, 20 items) developed by Weiss et al. (1967) was used with 5-point Likert-type scale from ‘very dissatisfied’ to ‘very satisfied’. For the short form MSQ items, the translation by Baycan (1985) was used. For the internal marketing items, translate and reverse translate procedure was applied. Then all items in the questionnaire were controlled by academician who is expert in English and necessary adjustments were revised.

3.3. Sample The office employees of container line ship agents in İzmir were determined as the sample of this research by judgmental sampling which is non-probability sampling method. In order to identify the sample, the list of ship agents registered in İzmir Chamber of Shipping was obtained from the İzmir branch of Istanbul & Marmara, Aegean, Mediterranian and Blacksea Region Chamber of Shipping. To obtain the permission to carry out the survey, telephone interviews have been made with the managers or employees in these ship agents of container lines. 11 ship 34



agents of container lines accepted to help for survey application. The average total number of office employees in these 11 ship agents of container lines were determined as 279. Due to time limitations and workloads of the employees, questionnaire forms could not be reached to the whole sample of the research. Totally 157 usable questionnaires were returned, yielding a response rate of 56 %. 14 questionnaire forms which are not suitable for the analysis were excluded from the research.

4. FINDINGS 4.1. Reliability and Validity of the Scales Reliability is the important requirement of scientific researches and can be described as the degree of a scale or instrument’s consistency in the measurement of a construct (Kothari, 2004: 74). The most common method used to measure the reliability is the Cronbach’s Alpha value which describes the reliability of internal consistency (Altunışık et al. 2012: 124). Cronbach’s Alpha coefficient’s value ranges from 0 to 1 and According to Nunnally (1978) accepted Cronbach’s Alpha value must be at least 0.7 and above in the literature. Internal marketing scale consists of total 15 items and its Cronbach’s Alpha coefficient value is 0,914. Job satisfaction scale consists of 20 items totally and its Cronbach’s Alpha coefficient value is 0,923. So, when compared with the related literature, both of the scales can be considered as highly reliable (Table 3). Table 3: Reliability of the Scales Scale

Number of items

Internal Marketing Scale Job Satisfaction Scale

15 20

N (valid) 143 143

Cronbach’s Alfa (α) ,914 ,923

As presented in Table 4, in order to prove the content and face validity of the questionnaire, the opinions of managers and academicians are taken into consideration. Therefore, the scales used in this research are consistent with the aim of the research and accepted as valid instruments.

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Table 4: The Control of Content and Face Validity of the Questionnaire Interviewee Deputy General Manager in Container Line Ship Agent Branch Manager in Container Line Ship Agent Branch Manager in Container Line Ship Agent Regional Manager in Container Line Ship Agent Customer Services Director in Container Line Ship Agent Lecturer in University

Contents of Interview

Method

The control of compliance and intelligibility and scope of the items in the questionnaire form The control of compliance and intelligibility and scope of the items in the questionnaire form The control of compliance and intelligibility and scope of the items in the questionnaire form The control of compliance and intelligibility and scope of the items in the questionnaire form The control of compliance and intelligibility and scope of the items in the questionnaire form The control of the meaning of the expression in the translation of English items in Turkish

Face to face interview Face to face interview

Lecturer in University

Pilot test of the content validity of the questionnaire related with the subject






Control of any possible writing or perception errors in the questionnaire





Date June 2016 June 2016

E-mail

June 2016

E-mail

June 2016

Face to face interview Face to face interview Face to face interview Face to face interview Face to face interview Face to face interview Face to face interview Face to face interview

June 2016 May 2016 May 2016 May 2016 May 2016 May 2016 May 2016 May 2016

4.2. Profile of Respondents Profile information of the respondents, which detailed in Table 5, includes; gender, age, education level, income, department, title or position, experience in the sector and working year in the organization.

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Table 5: Profile of the Respondents Gender

F

%

Male Female

83 60

58,0 42,0

TOTAL Education Level

143 F

100,0 %

High School Associate Degree Bachelor Degree Master Degree

7 7 113 16

4,9 4,9 79,0 11,2

Age 24-29 30-35 36-41 42-47 More than 47 TOTAL Income Less than 2000 TL 2001 - 2999 TL 3000 - 3999 TL 4000 - 4999 TL 5000 TL and more No Response TOTAL Title/Position Asst. Specialist Specialist Customer Rep. Sales Responsible Team Leader Asst. Dept. Supervisor Dept. Supervisor

F 52 49 28 9 5 143 F 21 34 24 4 12 48 143 F 52 36 18 13 7

% 36,4 34,3 19,6 6,3 3,5 100,0 % 14,7 23,8 16,8 2,8 8,4 33,6 100,0 % 36,4 25,2 12,6 9,1 4,9

TOTAL 143 100,0 Department F % Vessel Operation 6 4,2 Documentation 37 25,9 Sales and Marketing 41 28,7 Finance & 12 8,4 Accounting 20 14,0 Exp.&Imp. Operation 8 5,6 CMC 3 2,1 12 8,4 Customer Services 14 9,8 7 4,9 Foreign Accounts 143 100,0 TOTAL TOTAL 143 100,0 Sector Experience F % Working Year F % Less than 1 year 8 5,6 Less than 1 year 18 12,6 1-4 years 51 35,7 1-4 years 60 42,0 5-9 years 32 22,4 5-9 years 27 18,9 10-14 years 24 16,8 10-14 years 23 16,1 15 years and more 28 19,6 15 years and more 15 10,5 TOTAL 143 100,0 TOTAL 143 100,0 Note: F: Frequency, Exp.: Export, Imp.: Import, CMC: Container Management and Control, Rep.: Representative, Dept.: Department, Asst.: Assistant.

4.3. Factor Analysis In order to demonstrate that the data are suitable for the factor analysis, Kaiser-Meyer-Olkin (KMO) and Barlett Sphericity Test should be applied. If the p (sig.) value in Bartlett’s test is less than 0.05 this means that data are suitable for the factor analysis. P-value which is more than 0.05 indicates that the factor analysis is not applicable for this data set (Altunışık et al. 2012). Table 6 shows the result of the KMO and Bartlett’s Test of Sphericity for internal marketing and job satisfaction scale. According to 37



the KMO value which is 0,882 and p-value which is less than 0.05 (sig.= ,000), the data sets are adequate and suitable for the factor analysis. Table 6: KMO and Bartlett’s Test of Sphericity Internal Marketing Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx. Chi-Square Bartlett's Test of df Sphericity Sig.

,882 1326,327 105 ,000

Job Satisfaction Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx. Chi-Square Bartlett's Test of df Sphericity Sig.

,884 1449,421 153 ,000

Internal marketing items were grouped under 3 factors and named as;  Development (Training and Education)  Vision and Communication  Reward System. Table 7 summarizes the details of factor analysis including reliability of factor items, total variance explained, and factor loading values. 3 factors of the internal marketing explain 67,004 percent of the total variance. Factor 1 – Development (Training and Education): The first factor includes 7 internal marketing items and explains 24,833 percent of the total variance. Cronbach’s Alpha coefficient value of this factor is 0,867. Factor 2 – Vision and Communication: This factor includes total 5 items related to vision and internal communication and explains 24,831 percent of the total variance. The second factor has the highest Cronbach’s Alpha coefficient value which is 0,896. Factor 3 – Reward System: The third factor as ‘’reward systems’’ consists of 3 items and explains 17,340 percent of the total variance. Cronbach’s Alpha coefficient value of this factor is 0,887. All the items loaded on the third factor related to performance measurement and reward system and has the loading value of 0,800 and more.

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Factor 1- Development (Training and Education) Goes beyond training and educates employees as well. Teaches their employees ‘why they should do things’ and not just ‘how they should do things’. The employees are properly trained to perform their service roles. Views the development of knowledge and skills in employees as an investment rather than a cost. Prepares their employees to perform well. Skill and knowledge development of employees happens as an ongoing process. Has the flexibility to accommodate the differing needs of employees. Factor 2- Vision and Communication Communicates its vision to well to employees. Offers employees a vision that they can believe in. Communicates to employees the importance of their service roles. Uses the data gathered from employees to improve their jobs, and to develop strategy of the organization. Places considerable emphasis on communication with employees. Factor 3- Reward System Employees who provide excellent services are rewarded for their efforts. Measures and rewards employee performance that contributes most to organization’s vision. Performance measurement and reward systems encourage employees to work together. Total Cumulative Variance % : 67,004

24,833

24,831

17,340

,896

,887

TVE %

,867

Alpha (α)

Table 7: Factor Analysis of the Internal Marketing Items


Internal Marketing Items


,737 ,728 ,710 ,703 ,677 ,613 ,568 ,846 ,834 ,784 ,765 ,657 ,899 ,895 ,800

Factor Groups and Factor Loadings 1 2 3



According to the results of the factor analysis, job satisfaction items were grouped under 2 factors; extrinsic satisfaction and intrinsic satisfaction. The ‘co-workers’ and ‘moral values’ items which have loading values less than 0,50 (0,414 and 0,468) were excluded from the analysis and the factor analysis repeated with total 18 items in the job satisfaction scale. These two factors explain 53,288 percent of the total variance. Table 8: Factor Analysis of the Job Satisfaction Items Job Satisfaction Items Factor 1- Extrinsic Satisfaction Supervision-human relations Supervision-technical Recognition Company policies & practices Advancement Compensation Achievement Working conditions Factor 2- Intrinsic Satisfaction Authority Social service Variety Independence Activity Ability utilization Social status Creativity Job security Responsibility Total Cumulative Variance % : 53,288

Alpha (α)

TVE %

,888

27,571

Factor Groups and Factor Loadings 1 2 .902 ,885 ,761 ,727 ,655 ,592 ,535 ,505

,879

25,716 ,736 ,733 ,696 ,651 ,647 ,623 ,595 ,557 ,545 ,514

Factor 1 – Extrinsic Satisfaction: There are 8 job satisfaction items loaded on extrinsic satisfaction factor and they explain 27,571 percent of the total variance. Items in this factor have the 0,888 Cronbach’s Alpha value. First six items loaded on this factor are the same in the original short form MSQ scale. ‘Achievement’ item which is intrinsic satisfaction item in the original scale is loaded on the extrinsic satisfaction factor in this research. The last item in this factor ‘working conditions’ is general satisfaction item in the original scale. 40



Factor 2 – Intrinsic Satisfaction: The second factor includes the 10 job satisfaction items and explains the 25,716 percent of the total variance. According to Cronbach’s Alpha coefficient value of this factor (α =0,879), this factor is reliable. 10 items were loaded in this factor are consistent with the intrinsic satisfaction items in the original Minnesota job satisfaction scale.

4.4. Results of Hypothesis Tests by Regression Analysis ‘Internal marketing has a significant positive effect on job satisfaction’ hypothesis was tested by regression analysis. The dependent variable is job satisfaction and the independent variable is internal marketing. H1: Internal marketing has a significant positive effect on job satisfaction. Table 9: Results of Regression Analysis for The Effect of Internal Marketing on Job Satisfaction Independent Variable Internal Marketing (H1) F R2 Adj. R2

Dependent Variable Job Satisfaction β t Sig. ,791 15,377 ,000 236,462 ,000 ,626 ,624

Result Supported

The sig. value of F test is 0,000 (see Table 9), this means that the created regression model is statistically significant and explains the dependent variable. R2 value is 0,626 for this regression model. This value shows that the independent variable (internal marketing) can explain the 62,6 percent of change in the dependent variable (job satisfaction). And the result of the regression analysis showed that there is a positive (β=0,791) and significant effect (sig.< 0,05 and sig.=0,000) of internal marketing on job satisfaction. Therefore, H1 is supported. In order to test the effects of internal marketing dimensions on job satisfaction, the following sub-hypotheses were developed. H1-1: Development dimension of internal marketing has a significant positive effect on job satisfaction. 41



H1-2: Vision and communication dimension of internal marketing has a significant positive effect on job satisfaction. H1-3: Reward system dimension of internal marketing has a significant positive effect on job satisfaction. The dependent variable is job satisfaction and the independent variables are the dimensions of internal marketing (development, vision and communication, and reward system) for these hypotheses. The results of regression analysis are presented in Table 10. Table 10: Results of Regression Analysis for the Effects of Internal Marketing Dimensions on Job Satisfaction Independent Variables Development (H1-1) Vision and Communication (H1-2) Reward System (H1-3)

Dependent Variable Job Satisfaction β t Sig. ,484 9,440 ,000 ,492 9,602 ,000 ,397 7,753 ,000

Result Supported Supported Supported

As shown in Table 10, the created regression model for H1-1, H1-2, and H1-3 is statistically significant (sig.< 0,05). Because the significance values are less than 0,05 for all internal marketing dimensions, H1-1, H1-2, and H1-3 are supported. There is a positive (β=0,484) and significant effect (sig.< 0,05 and sig.=0,000) of development dimension on job satisfaction. There is a positive (β=0,492) and significant effect (sig.< 0,05 and sig.=0,000) of vision and communication dimension on job satisfaction. There is a positive (β=0,397) and significant effect (sig.< 0,05 and sig.=0,000) of reward system dimension on job satisfaction. The below sub-hypotheses were developed to examine the effects of internal marketing dimensions on intrinsic job satisfaction. H1-4: Development dimension of internal marketing has a significant positive effect on intrinsic job satisfaction. H1-5: Vision and communication dimension of internal marketing has a significant positive effect on intrinsic job satisfaction. H1-6: Reward system dimension of internal marketing has a significant positive effect on intrinsic job satisfaction.

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The dependent variable is intrinsic satisfaction and the independent variables are the dimensions of internal marketing (development, vision and communication, and reward system) for these hypotheses. Table 11: Results of Regression Analysis for the Effects of Internal Marketing Dimensions on Intrinsic Satisfaction Independent Variables Development (H1-4) Vision and Communication (H1-5) Reward System (H1-6)

Dependent Variable Intrinsic Satisfaction β t Sig. ,210 3,000 ,003 ,421 6,017 ,000 ,315 4,506 ,000


According to results of regression analysis presented in Table 11, there are positive and significant effects of internal marketing dimensions on intrinsic satisfaction. All significance values are less than 0,05, so H1-4, H1-5, and H1-6 are supported. Development dimension has 0,210 beta (β) and 0,003 significance value. Vision and communication dimension has 0,421 beta (β) and 0,000 significance value. Reward system dimension has 0,315 beta (β) and 0,000 significance value. The last three sub-hypotheses were developed to examine the effects of internal marketing dimensions on extrinsic job satisfaction. H1-7: Development dimension of internal marketing has a significant positive effect on extrinsic job satisfaction. H1-8: Vision and communication dimension of internal marketing has a significant positive effect on extrinsic job satisfaction. H1-9: Reward system dimension of internal marketing has a significant positive effect on extrinsic job satisfaction. The dependent variable of H1-7, H1-8 and H1-9 is extrinsic satisfaction. There are positive and significant effects of development dimension (β=0,450 and sig.=0,000) vision and communication dimension (β=0,287 and sig.=0,000), reward system dimension (β=0,261 and sig.=0,000) on extrinsic satisfaction (see Table 44). So, H1-7, H1-8, and H1-9 are supported.

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Table 12: Results of Regression Analysis for the Effects of Internal Marketing Dimensions on Extrinsic Satisfaction Independent Variables Development (H1-7) Vision and Communication (H1-8) Reward System (H1-9)

Dependent Variable Extrinsic Satisfaction β t Sig. ,450 6,594 ,000 ,287 4,204 ,000 ,261 3,827 ,000


5. CONCLUSION AND DISCUSSION This research aimed to investigate the perceived internal marketing activities and their effect on job satisfaction, so it may help container line ship agents’ managers who make an effort to provide better quality services for the maritime industry, and also contributes to the literature related to the subject. The results of factor analysis applied to the items in the internal marketing scale are consistent with the original internal marketing scale factors developed by Foreman and Money (1995) and the 15 internal marketing items are grouped under three factors with high reliability. ‘Achievement’ and ‘working conditions’ items were loaded on the extrinsic satisfaction factor but in the original scale, they are not under the extrinsic satisfaction factor. Achievement factor was intrinsic satisfaction item and the working condition is general satisfaction item in the original scale. Different factor loadings and different items in the factors from the original scale were revealed also in other studies (Hancer et al. 2003; Hirschfeld, 2000; Köroğlu, 2012 and Schriesheim et al. 1993) and can be regarded as acceptable. The main hypothesis of the research examining the effect of internal marketing on job satisfaction was tested with regression analysis. The analysis revealed that the internal marketing has a positive effect on job satisfaction. The results of the analysis support the findings of the studies in the literature. The studies in the hotel sector (Hwang and Chi, 2005 and Gounaris, 2008), hospitals and medical centers (Chang and Chang, 2007; Iliopoulos and Priporas, 2011; Ahmad and Al-Borie ,2012; Pantouvakis, 2012; Dahl and Peltier, 2014 and Chen et al. 2015, Atlay Işık and Altunoğlu,2016b), education sector (Demir et al. 2008; Usta, 2009; Başaran et al. 2011); Ting, 2011; Hung, 2012; Ogunnaike et al. 2012; Omar Salem, 44



2013; and Shabbir and Salaria, 2014), banking sector (Tortosa-Edo et al. 2010; Kameswari and Rajyalakshmi, 2012; Barzoki and Ghujali, 2013; and De Bruin-Reynolds et al. 2015) and sport schools and centers (Yıldız, 2011 and Chiu et al. 2014) have found similar results related to internal marketing activities and job satisfaction of employees. All sub-hypotheses developed to test the effects of internal marketing dimensions on job satisfaction are supported. There are significant positive effects of development, vision and communication, and reward system dimension of internal marketing on job satisfaction. The study of Ahmad and Al-Borie (2012) also has found that ‘training and development’ and ‘reward and incentive systems’ have significant effect on the job satisfaction. Demir et al. (2008) have found that the education, vision and internal communication have influence on the job satisfaction. But the reward system influence on the job satisfaction has not been found in their study. In service organizations, employees as providers of service strongly influence the quality of service offered. As in the service profit chain presented by Heskett et al. (1994), the satisfaction of employees may result in customer satisfaction and loyalty. In long term, the profitability is the direct result of the satisfied and loyal customers. Arnett et al. (2002) suggested that successfully implemented internal marketing activities result in satisfaction of employees and positive employee behaviors. So, the positive employee behaviors strengthen the organizations’ abilities to offer high quality service. As a result, within the scope of internal marketing approach, training and education activities, performance measurement and incentive systems, offering a vision to ensure the employees commitment to organizations and internal communication positively influence the satisfaction of employees. From this point of view, it may be advisable for organizations to provide effective and comprehensive education and training programs that employees can improve their competencies and to enhance the effective ways of communication. Establishing fair performance measurement and reward systems may also be beneficial for organizations. In order to improve satisfaction of employees, offer better service and have greater competitive advantage in the sector, the managers of the container line ship agents should understand the importance of internal marketing activities and their effects on the employees. 45



This research contributes to relevant literature but also has some limitations. So, the scope of this research can be extended by conducting researches in other regions or in other sectors of shipping. It is valuable to make further researches where comparable outcomes may be obtained.

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